This is price bracketing, which is a form of anchoring.
The idea is that if you had two items, one for $10 and one for $40, adding a $200 item is going to increase sales of the $40 because it makes it seem more reasonable in comparison. It's not going to push a lot of people to the higher-priced item.
The Apple example I like is the iPad. It's priced against both the 512gb version (+$350) and the Wifi+Cellular (+$130) so you think that the $649 version is a bargain against $1129 and you don't compare it against the Amazon Fire at $49.99.
An iPad wouldn’t be compared to an Amazon Fire because they aren’t comparable products. If you value iOS, Facetime, iMessage, and Apple’s general product experience, then others would also have to provide a similar experience to be comparable.
Most people I know FaceTime...every single older person in my extended family. It would be useless without them being able to Facetime with their grandkids.
That should be most older people you know, then. Older people often choose Apple products due to the comparative simplicity of the operating system and UX. However, Android is far more popular in terms of total units sold on both phones and tablets, so the parent comment is broadly true.
The idea is that if you had two items, one for $10 and one for $40, adding a $200 item is going to increase sales of the $40 because it makes it seem more reasonable in comparison. It's not going to push a lot of people to the higher-priced item.
The Apple example I like is the iPad. It's priced against both the 512gb version (+$350) and the Wifi+Cellular (+$130) so you think that the $649 version is a bargain against $1129 and you don't compare it against the Amazon Fire at $49.99.